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Players will not have to sit out a year if they decide to transfer, they will be eligible...

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Players will not have to sit out a year if they decide to transfer, they will be eligible immediately at their new school. All incoming class of 2012 signees can be released from their letters of intent. The permission to contact rules regarding current players will be suspended. Penn State can't restrict a player from transferring and all the player has to do is notify Penn State of their intent to transfer. Other schools must simply inform the PSU athletic department of their intention to talk to a transfer as well. All signees and current players may take as many official or unofficial visits as they want during the 2012-13 academic year.

NCAA loosens transfer rules for Penn State players - CBSSports.com Of all the penalties handed down by the NCAA (with more to come from the Big Ten at an 11 am press conference), this has to be the most interesting and potentially damaging. I imagine most of the upper classmen will likely stay put, but for freshman and sophomores that have a chance to contribute a the BCS level staying at Penn State is foolhardy at best. Couple that with their ability to take as many visits as they want in the coming year, and Penn State just became the best JUCO program in the country. Also of note, the NCAA is considering waiving scholarship limits for schools who accept PSU transfers, giving teams that are already at the 85/25 mark a way to add even more scholarship players to the roster.
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